America's best new homes: Architects reveal the finest houses built in 2012 (and one even comes with a living room IN a forest)

The American Institute of Architects announced the winnersof the 2013 AIA/HUD Secretary Housing Award with the top prize going to a contemporary-styled home in Orca Islands, Washington State.

At the request of the artist owner Marie Gladwish, who also happens to be the mother of architect Gary Gladwish, the home utilizes its natural backdrop and even comes with a living room in the woods.

The two other top contenders also made the most of their natural surroundings in California and Colorado and both have pools that can be used year-round.

Not your typical living room: this one is located in a forest

Architect Gary Gladwish designed the home for his artist mother and preserved the extraordinary views

A sliding panel door separates the outside from the inside

The hilltop location offers incredible views of the Canadian Gulf Islands

The home, which tops at 2,600 square
feet, also has a combined kitchen-dining area, a master suite, study and
art studio. A garden bisects the house and creates two 'zones' with
optimal views of the outside scenery.

The hilly locale means that beyond the forest filled with madrone trees and firs anyone in the home can see all the way to the Canadian Gulf Islands.

The house was constructed with energy-efficiency and conservation in mind.